JLL Secures $1.2 Billion in Construction Financing for Data Centers in Northern Virginia

JLL's Historic Financing for Data Centers in Northern Virginia

In a remarkable feat, JLL's Capital Markets team has successfully secured over $1.2 billion in construction financing for The BlackChamber Group, aimed at facilitating the development of several advanced data center campuses in Northern Virginia. This financing is part of a broader initiative to establish four hyperscale powered shell campuses, which will ultimately yield over 740 megawatts of power capacity.

Extensive Development Portfolio

BlackChamber's strategy is comprehensive, encompassing a total of eight campuses planned within this key region. This ambitious project is expected to produce nearly 1.5 gigawatts of gross power capacity that will occupy over six million square feet. The collaboration between JLL and BlackChamber has been marked by strategic financial planning and an unwavering commitment to innovative solutions.

Jamie Leachman, the Senior Managing Director and Co-Head of JLL's Washington, D.C. office, along with Drake Greer from the National Data Center Capital Markets team, provided expert guidance in arranging these substantial financial resources. Their expertise was highlighted by BlackChamber Managing Partner Conley Patton, who commended JLL for their adept handling of a challenging market landscape and the diverse lender arrangements executed.

The Data Center Landscape in Northern Virginia

Northern Virginia proudly holds the title of the largest data center market globally, demonstrating impressive growth with over 4.6 gigawatts of power available as of the first half of 2024. The demand for data centers in this area is evident, exemplified by a remarkable absorption rate of over 1.3 gigawatts throughout 2024, resulting in a minimal vacancy rate of just 0.4% by year-end. Currently, there are plans underway for over 5.8 gigawatts of data center development in the region.

As noted by Leachman, the demand surge is driven by various stakeholders, including cloud services, AI, and enterprise clients. This heightened interest from capital markets showcases the growing recognition of data centers as substantial contributors to the commercial real estate sector.

Greer further elaborated on the evolving nature of this sector, indicating that what was once a niche within commercial real estate has transformed into a major player attracting significant equity and debt investments. The recent financing achievements for BlackChamber reflect the diverse range of capital pursuing opportunities in this high-demand area.

A Look at the Future

JLL's Capital Markets division encompasses a full spectrum of services tailored for real estate and infrastructure stakeholders. Their extensive knowledge of local markets, coupled with a global perspective, positions them as leaders in providing optimal investment solutions. The National Data Center Capital Markets team operates under the leadership of Senior Managing Director Carl Beardsley, reinforcing JLL’s capability in this specialized field.

About BlackChamber

The BlackChamber Group is a dedicated data center developer and SEC-registered investment advisor based in Washington, DC. With a mission to optimize real estate partnerships with leading technology firms, BlackChamber brings significant industry expertise and a proven record of successful data center projects.

About JLL

JLL (NYSE: JLL), a historic figure in global commercial real estate and investment management, has been delivering value to clients for over two centuries. With a workforce exceeding 111,000 across more than 80 countries, JLL combines local proficiency with a powerful global framework to enhance real estate investments and practices. Their commitment to shaping a brighter future in real estate continues to guide their innovative services.

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